Tokyo Market Summary: Nikkei Average rebound and yen depreciation, 161 yen to 20 yen = first time in 37 and a half years, down 20 yen in six months

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Is TOPIX rising for the first time in 34 years and the depreciation of the yen and geopolitical risks creating an “unexpectedly high”
There was a scene where the TSE stock price index (TOPIX) temporarily surpassed the high for the first time in about 34 years set in March. The driving force is buying value (undervalued) stocks with large market capitalization, such as banks and trading companies, which seem to have resumed from this week. It showed strength amid views that stock sales associated with pension fund rebalancing (asset reallocation) would increase at the end of the quarter. There is a possibility that the current depreciation of the yen and smoldering geopolitical risks will also produce an “unexpectedly high” outlook.

The yen fell to the 161 yen level against the dollar due to dollar purchases of actual demand
The yen fell against the dollar in the Tokyo Foreign Exchange Market on the 28th, and 1 dollar = 161 yen and 20 yen was added at one point. The yen depreciated and the dollar rose for the first time in about 37 and a half years since 1986/12. Actual demand trading tends to expand at the end of the quarter, and the movement of domestic importers and institutional investors to raise dollars depresses the yen exchange rate.
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Toyota - rebound for the first time in 3 days, yen depreciated to the 161.2 yen range and bought automobile stocks

Production chaos due to vehicle fraud, economic turmoil, production cuts are expected again in June
Production activities in the domestic manufacturing industry are going back and forth. According to the industrial production index announced by the Ministry of Economy, Trade and Industry on the 28th, the suspension of production at Daihatsu Motor went round and recovered in May, but it was newly discovered in June $Toyota Motor(7203.JP)$It is now expected that it will fall again due to certification fraud, etc. The turmoil in automobile production has become a major cause of economic turmoil.

Small and medium enterprises “the depreciation of the yen is a big disadvantage” 54.8% Japanese sales survey
On the 28th, the Japan Chamber of Commerce and Industry announced survey results on the impact of the depreciation trend of yen on the performance of small and medium-sized enterprises. The number of responses that “the disadvantages are huge” was over half at 54.8%. “No merits or demerits” (19.8%) continued. “Advantages and disadvantages are about the same” was 7.8%, and “big merit” was 2.3%.

Pay attention to the handle
Kobayashi Pharmaceutical's “red malt” health damage, 76 new suspected deaths
Minister of Health, Labor and Welfare Keizo Takemi said at a press conference on the 28th $Kobayashi Pharmaceutical(4967.JP)$It was revealed that 76 new deaths were discovered due to suspected health hazards caused by foods with functional claims containing “red malt (koji)” ingredients. Until now, Kobayashi Pharmaceutical has reported the death toll to the Ministry of Health, Labor, and Welfare as 5.

SoftBank G's stock price continued to grow for 3 days, joint venture with US medical tech company
$SoftBank Group(9984.JP)$(SBG) has continued to grow for 3 days. It rose to 10,400 yen, 265 yen (2.61%) higher than the previous day, and was close to the year-to-date high price (10,550 yen). On the 27th, the launch of a service to analyze medical data with artificial intelligence (AI) was officially announced. A mechanism for proposing cancer treatment methods based on individual genetic information has been realized, and it is said that it will lead to the advancement of medical standards, and purchases are gathering due to expectations for future profit expansion.

Mitsubishi UFJ - new high July interest rate hike observations intensified, bought with bank insurance, long-term interest rate was 1.085% at one time
$Mitsubishi UFJ Financial Group(8306.JP)$is a new high. Observations of interest rate hikes in July by the Bank of Japan are intensifying, and bank and insurance stocks are being bought. Amid growing views that the depreciation of yen will increase pressure on prices, the exchange market hit the 161 yen level per dollar on the 27th. Today, the June metropolitan consumer price index (CPI), which was announced a little while ago, exceeded market expectations, and there was a scene where domestic 10-year bond yields temporarily rose to 1.085%, partly due to the influence of strong price indicators.